Bitcoin’s slow adoption may be offset by growing credentials as investment
There are a few Bitcoin discussions in the digital assets industry that never reach a conclusive end and mass adoption is one of them. With arguments ranging from improving fundamental statistics to replacing the existing monetary system, users have made the case for Bitcoin’s eventual mass adoption, a wide topic.
The latest opinion to surface comes from Willy Woo, a popular Bitcoin proponent. During a recent Bitcoin conference in Las Vegas, Woo claimed that Bitcoin adoption hasn’t picked up speed yet due to its inherent ‘engineered’ growth rate.
Drawing a comparison with the Internet’s initial rise, Woo suggested that at the moment, only about 1 percent of the entire population used Bitcoin. He added,
“At the rate with which Bitcoin is growing, which is 2x, and 4x in the bull market, if you run those numbers, we will have half the world using Bitcoin in 7 years.”
There is a good point there. However, from an institutional standpoint, Bitcoin’s growth and adoption can be identified, according to VanEck‘s January 2020 report.
‘The Investment Case for Bitcoin’ suggested that in spite of other concerns with regards to exchanges, Bitcoin has been more and more available to retail investors over the past year. From Q1 2018 to Q3 2019, the CME Futures contracts have accumulated over 15,000 BTC in terms of Open Interest, and only hit a decline in Q4 2019.
The distribution aspect of Bitcoin also suggested that BTC is no longer concentrated in a few exchanges and proponents, as the increasing involvement of big players may just promote the eventual growth of the crypto-industry.
From the table attached above, it can be identified that the number of wallets with Bitcoins ranging from 0-0.001 to 100,000-1,000,000 BTC has improved, with the king coin appearing to be well-distributed. However, it is important to keep in mind that large accounts that have accumulated a huge number of Bitcoins may represent multiple users as well.
At press time, Bitcoin was enjoying a fairly bullish period, something that should only be a positive for its long-term adoption. At the end of the day, it’s perhaps safe to say that while Bitcoin is doing well from an investment point of view, mass adoption is still a work in progress.